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Mental health parity bill earns approval
(November 2007 Issue)

By Phyllis Hanlon

The road to mental health parity has survived several bumps in the road since 1996 when the federal government passed watershed legislation to equalize treatment for physical and mental illness. Earlier this year, Senators Edward Kennedy (D-Mass.), Pete Domenici (R-N.M.), and Michael Enzi (R-Wyo.) filed a more comprehensive bill (S.558), which earned Senate approval on September 18.

According to the American Psychological Association (APA), more than 44 million Americans live with some type of mental disorder. Approximately one-third receive treatment, while many mental illnesses remain unreported. Additionally, research studies have proven the existence of links between mental health disorders and physical disease such as heart attacks and other life-threatening conditions. This parity bill strives to equalize coverage for mental and physical ailments.

On February 14, 2007, this legislation gained overwhelming approval from the Senate Health, Education, Labor and Pensions Committee with an 18-3 vote. One of the largest groups to benefit from this legislation is the self-funded employee health benefit plans. While 43 states have some level of mental health parity coverage on the books, these laws do not currently cover the above-mentioned plans. Substance abuse will also be covered under the new parity law.

Some opponents argue that the cost of this coverage will be too high. However, the Congressional Budget Office foresees an average increase of 0.4 percent in insurance premiums.

In August, Senators Jim DeMint (R-S.C.) and Tom Coburn (R-Okla.) stalled the approval process when they placed holds on the bill, requesting the opportunity for additional discussion and debate. However, one month later, Sen. DeMint lifted his hold and the Senate passed the bill. The bill now moves to the House of Representatives for discussion and vote.

Russ Newman, Ph.D., J.D., executive director for the APA's Professional Practice, applauds passage of this bill. "For more than a decade, the American Psychological Association has been working to put an end to insurance practices that discriminate against those with mental health disorders. It has taken many years, considerable work and an unprecedented level of consensus between the mental health advocacy community and employers to finally be confident that genuine parity will soon be in place," he says. "When the Mental Health Parity Act of 2007 is signed into law, more than 113 million Americans will benefit. We look forward to action in the House as soon as possible."

Newman credits the originators of the bill for "their persistent efforts on this issue and the leadership they have provided in spearheading this bill."

The House's version of a mental health parity bill (HR 1424) earned approval from the House Ways and Means Committee by a 27-13 vote on September 26. Sponsored by Congressmen Patrick J. Kennedy (D-R.I.) and Jim Ramstad (R-Minn.), the bill is the brainchild of the late Paul Wellstone and includes broader protection and coverage for those with mental illness.